Interest rates
A) often change with changes in the economy.
B) affect consumer markets, but not business customers.
C) usually decrease during periods of inflation.
D) do not directly affect the total price borrowers must pay for loans.
E) don't affect the prices buyers pay.

Question

Quizplus · Accepted Answer

Interest rates often change with changes in the economy, such as fluctuations in inflation, unemployment, and overall economic growth.

Answer: D 
 Interest rates directly affect the total price borrowers must pay for loans, including both the principal amount borrowed and the interest charged on that amount over time.

Answer: E 
 This statement is incorrect as interest rates can directly impact the prices buyers pay for goods and services, particularly for larger purchases that require financing or loans.

Interest Rates